Presentation Transcript

1. FRDC – In search of Industry Champions, Marketing levy – has the time finally come?Dr Patrick Hone www.frdc.com.au
2. 10 years ago APFA agreed to establish a marketing levy
3. The harsh reality of Australian rural production - you innovate or die The rural sector is always subject to enormous pressures for change Continuous decline in terms of trade Producers recognise that they must innovate to survive Limitations of ‘Science push’ given the dynamic nature of rural business
4. Australia – helicopter view Growing population Increasing disposable income for domestic consumers and importing countries Increasing seafood consumption – 17kg/person Value of Australian Dollar Increasing energy costs Trade and market access – complex, costly Changing eating habits – where is abalone Access changing eg recreational and indigenous sectors “Comprehensive adequate and representative” system of MPAs Complex regulatory system Community concerns about environment - supermarkets
5. Operating environment for 2011 Productivity Commission inquiry finalised New National Rural R&D Strategic Investment Plan released Marine Plans for most bio-regions released – mixed messages from industry National Food Plan and National Food Processing Plan National Dietary Guidelines released – sustainability ? Retail push for sustainability – eg Woolworths ban on sharks Eco-labelling - where to? Greens balance of power from 1 July 2011 Australian economy - High dollar Fishing and Aquaculture RD&E Strategy – Major-Support-Link implemented
6. Future predictions‘Modelling Australia’s Fisheries to 2050’ Domestic consumption of seafood will increase from 11.5kg per capita to 17kg by 2020 and then increase again to 25kg by 2050. Aquaculture will double in physical terms (tonnage) by 2020 and double again by 2050. Even assuming consumption stays at 11.5kg per annum to 2020 it will require an increase in aquaculture production of 100,000 tonnes even maintaining imports at around 300,000 tonnes
7. Do you think the following sectors of the Australian fishing industry are sustainable? Perceptions of industry Source: FRDC study 2011
8. who can we believe . . . ? No more fish to eat in 40 years Study warns that all seafood stocks will have collapsed by 2048
9. What industry is telling FRDC? Security of supply – improve community perceptions
10. Theme 8: Consumers, products and markets Price has been declining. Not consistent with the declining supply / rising demand hyperbole
11. Theme 8: Consumers, products and markets ..because internal supply has been increasing (and poultry is also a substitute)
12. What is Social license?
13. FRDC’s focus on Program 3: CommunitiesTheme 10: Resilient and supportive communities Increased focus on Extension and Adoption Recommendation 9.3 in Productivity Commission final report states “ Allow Statutory as well as industry owned RDCs to take on industry funded marketing functions” Proposing a National Fisheries Status Report and Aquaculture Sustainability Report
14. Marketing and Promotion Promote the industry – security of access Promote the product – increase price etc
15. using knowledge, communication, traceability and consensus to build supply chain confidence
16. Thank youQuestions